What Can You Do To Avoid Debt

What Can You Do To Avoid Debt
Often the best method to deal with debt is to avoid it
entirely. Of course, prevention is not a very widely used
approach as the sheer numbers of Americans in debt clearly
testifies. This does not mean that there aren't many
trying to claw their way out of the hole they dug for
themselves; there are thousands doing that every day. But,
what can you do to avoid debt in the first place?

The answer to this question is so important for many people
in this country, that in response, the numbers of so-called
debt management experts offering solid strategies to help
consumers avoid debt is proliferating rapidly, especially
with the accessibility of the internet. Yet, the results
of these solutions are any but satisfactory most of the
time. Are they all just selling worthless information?
That would be too easy an answer and not at all accurate.
The advice and tips are generally sound. What is the
problem then?

Most debt management experts and consultants are not out to
defraud their clients by offering bogus information and
solutions. The real issue is whether the clients really
understand what they must do to keep themselves out of
debt. For example, the experts say that you should "live
within your means." It makes sense in a way. You should
not live beyond your means by using credit cards
excessively and multiplying debt after debt through
outrageous spending. If you live within your means, you
simply spend what money you bring in each paycheck.

Of course, if you live within your means you will not have
any room for unexpected expenditures and may end up living
paycheck to paycheck anyway. There is no financial growth.
The chances of going into debt are still quite high when
you have no extra cash flow or savings to deal with
problems should they arise. Is there a better solution
that will help you avoid debt and also provide the extras
that will help you in the future?

Here is a question for you: Have you ever thought about
living below your means? This is not a new idea; it is no
innovative approach. At one time, this financial
philosophy was considered a virtue. Have you ever heard of
the word frugality? The modern equivalent is unfortunately
viewed as a derogatory term in our consumer driven culture.
Have you heard of any body being called a cheapskate?

It is unfortunate that many look down upon those who live a
frugal lifestyle. They fail to understand this is the only
genuine approach to staying out of debt since the
likelihood of becoming independently wealthy is a slim
hope. In fact, frugality can actually be a pathway to
riches. Some of the world's wealthy people made their
money by living cheap and simplistic lives, while saving
and investing their money.

If you want to live below your means, you must spend less,
create a budget to manage your expenditures, and look for
ways to bring in additional income each month so that you
have a surplus at the end. This surplus will be your
protection against debt because it can be used to build
savings. If you still don't understand what living below
your means requires, you should look at it this way: You
may have the money to spend on whatever you want but should
you? What happens if this attitude characterizes your
regular spending habits? Here is where the problem begins.
If you spend all of the extra money you have, it is more
likely that you will turn to extra sources like credit
cards and loans to get more cash to facilitate your
developing lifestyle of living beyond your means.

Learn to live with less and pay attention to where your
money goes. If you keep it simple now and live frugally,
you will avoid debt and maybe enter retirement earlier than
the people around you who are struggling under enormous
debt.

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Gary Milton has written on the subject of debt for many
years, you can find more od his articles a the debt help
and relief site, http://www.tfgi.com